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Reinsurance and Other Monoline Exposures (Tables)
 6 Months Ended
Jun. 30, 2017
Insurance [Abstract]  
Effects of Reinsurance on Statement of Operations
Effect of Reinsurance on Statement of Operations

 
Second Quarter
 
Six Months
 
2017
 
2016
 
2017
 
2016
 
(in millions)
Premiums Written:
 
 
 
 
 
 
 
Direct
$
72

 
$
42

 
$
181

 
$
63

Assumed (1)
7

 
(6
)
 
9

 
(8
)
Ceded (2)
(1
)
 
0

 
10

 
(17
)
Net
$
78

 
$
36

 
$
200

 
$
38

Premiums Earned:
 
 
 
 
 
 
 
Direct
$
163

 
$
220

 
$
330

 
$
410

Assumed
8

 
5

 
14

 
13

Ceded
(9
)
 
(11
)
 
(18
)
 
(26
)
Net
$
162

 
$
214

 
$
326

 
$
397

Loss and LAE:
 
 
 
 
 
 
 
Direct
$
79

 
$
101

 
$
146

 
$
210

Assumed
(3
)
 
11

 
0

 
(3
)
Ceded
(4
)
 
(10
)
 
(15
)
 
(15
)
Net
$
72

 
$
102

 
$
131

 
$
192

 ____________________
(1)
Negative assumed premiums written were due to changes in expected debt service schedules.

(2)    Positive ceded premiums written were due to commutations and changes in expected debt service schedules.
Exposure by Reinsurer

 
 
Par Outstanding
 
 
As of June 30, 2017
Reinsurer
 
Ceded Par
Outstanding (1)
 
Assumed Par
Outstanding
 
Second-to-
Pay Insured
Par
Outstanding (2)
 
 
(in millions)
Reinsurers rated investment grade:
 
 
 
 
 
 
Tokio Marine & Nichido Fire Insurance Co., Ltd. (3) (4)
 
$
3,200

 
$
—

 
$
—

National
 
—

 
3,737

 
3,758

Subtotal
 
3,200

 
3,737

 
3,758

Reinsurers rated BIG or not rated:
 
 
 
 
 
 
American Overseas Reinsurance Company Limited (3)
 
3,167

 
—

 
—

Syncora (3)
 
2,027

 
675

 
1,122

ACA Financial Guaranty Corp.
 
505

 
—

 
12

Ambac
 
112

 
5,437

 
2,339

MBIA
 
—

 
148

 
811

Financial Guaranty Insurance Company and FGIC UK Limited
 
—

 
377

 
954

Ambac Assurance Corp. Segregated Account
 
—

 
576

 
53

Subtotal
 
5,811

 
7,213

 
5,291

Other (3)
 
30

 
114

 
372

Total
 
$
9,041

 
$
11,064

 
$
9,421

____________________
(1)
Of the total ceded par to reinsurers rated BIG or not rated, $347 million is rated BIG.  

(2)
The par on second-to-pay exposure where the primary insurer and underlying transaction rating are both BIG, and/or not rated, is $746 million.

(3)
The total collateral posted by all non-affiliated reinsurers required to post, or that had agreed to post, collateral as of June 30, 2017 was approximately $312 million.

(4)    The Company benefits from trust arrangements that satisfy the triple-A credit requirement of S&P and/or Moody’s.


Amounts Due (To) From Reinsurers
Amounts Due (To) From All Reinsurers
As of June 30, 2017 

 
Assumed
Premium, net
of Commissions
 
Ceded
Premium, net
of Commissions
 
Assumed
Expected
Loss to be Paid
 
Ceded
Expected
Loss to be Paid
 
(in millions)
Reinsurers rated investment grade
$
10

 
$
(12
)
 
$
5

 
$
47

Reinsurers rated BIG or not rated:
 
 
 
 
 
 
 
American Overseas Reinsurance Company Limited
—

 
(4
)
 
—

 
37

Syncora
13

 
(18
)
 
—

 
(5
)
Ambac
31

 
—

 
(2
)
 
—

MBIA
0

 
—

 
(7
)
 
—

Financial Guaranty Insurance Company and FGIC UK Limited
4

 
—

 
(17
)
 
—

Ambac Assurance Corp. Segregated Account
6

 
—

 
(46
)
 
—

Subtotal
54

 
(22
)
 
(72
)
 
32

Total
$
64

 
$
(34
)
 
$
(67
)
 
$
79